Cyprus tax plans

Hi rgray27

I will be applying via an MEU1  and my partner by an MEU2

My understanding is via AI Google that I can visit the UK for up to 90 days in any 180 day period

AI Overview

With an MEU1 (a temporary residence permit for EU citizens) in Cyprus, you are generally allowed to stay in the UK (and other Schengen area countries) for a maximum of 90 days within a 180-day period. This is due to the visa-free travel rules within the Schengen area, which Cyprus is not part of.

However with a UK passport I thought you could spend up to 180 days at a stretch (one visit ) without losing your Cyprus tax status

Is that correct ?

I have been looking at N&I  income bonds which are paid monthly and ONLY into a UK bank and sit at circa 4%

These can be opened on line so presumably you can open one( or more as there are several fixed terms  on offer) after you get Cyprus tax status.

Whilst I have not seen anything about a 85 pounds guarantee , since they are UK Government backed one would imagine they should represent the safest investment around at present that pays monthly

Anyone found anything safer and better ?

@Gordon76

Hi - I was told it was 90 days with Temporary and 180 with Permanent. However I'll confirm when I meet my lawyer on Friday and will let you know.

Apologies for hogging the thread at the moment but I am starting to get excited at the prospect of moving to Cyprus

I am coming out to Cyprus for 31 days starting early Feb 2026 for a look around the Peyia area , following on from what rgray27 has posted , and courtesy of Blevins Franks

" Cyprus residency rules

You are regarded as a tax resident in Cyprus if you spend more than 183 cumulative days here during the tax year (1st January to 31st December). Days of arrival are counted towards the cumulative total (even if you leave again later the same day), but days of departure are not.

Cyprus takes a split-year approach. You are tax resident from the day you arrive if you go on to spend 183 days here that year. If you arrive later in the year and so spend less than 183 days here that year, your tax residency will start from 1st January the following year. "

Qu

So am I correct in thinking that the 31 days I plan to spend in Feb 2026 and early March 2026 ADD to the  number of remaining days that I need before applying to become a Cyprus tax resident namely:

183 minus 31 = 152 days

So if I return to Cyprus say on May 5th 2026 then start the MEU1 application process via a Cyprus Immigration/Tax professional , 152  days later which is October 4th 2026 ?

This sounds absolutely brilliant if correct

Will I get a rebate from HMRC starting from 1st Jan 2026  AND at what date do I stop paying HMRC  ?

How do you get the rebate paid back and where does it get paid back ie which account ?

Am I correct in assuming my partner who will be applying for an MEU2 will also be able to use these dates and be treated in a similar fashion as me ?

cheers

gordon

@Gordon76

I have had NS&I income bonds for a long time now. The full amount invested up to the limit of 1 million is protected so there is no 85k limit. The interest rate is not bad given it is fully safe if the UK does not go belly up!

Transfers in and out are not immediate. In from Revolut take about 3 hours in office hours. Non working days do not count. Transfers out and interest payments take about 3 days if working days over weekends longer.

The interest must be transferred out to the nominated bank account and there is no option to let it accumulate in the income bonds but you can just send it back as long as you keep the account under 1 million. I do not think you can have multiple income bond account in one name but they do have other bonds or the account could be in the spouses name

@Gordon76

You need to complete a P85 on the HMRC web site when you are booked to exit the UK. This will trigger HMRC to issue a NTX tax code. Any tax previously paid in the tax year will be recalculated and if a refund is needed they will pay it back. However, it will take a long time. I have been waiting for a refund for nearly a year and apparently there is no interest paid!

Once you are a tax resident of Cyprus you can apply to any private pension you recv and have the NTX code so no UK tax at source.  If you are recving a state pension the NTX code will automatically be applied and again no tax at source. All income must be declared in Cyprus even if the total income is below the 19k threshold.

Obviously things change all the time here so make sure you get up to date advice from a professional at the time.

@Gordon76

There is a difference between "habitual" residence (where you normally live) and tax residence, they're not necessarily the same!

While you can visit the UK for up to 90 days without becoming resident for immigration purposes, the rules around tax residency are much stricter and, especially in your first year out of the UK, you may only be allowed to visit for 16 days without risking losing non-UK-tax-resident status. It's complicated, it depends on HMRC's "statutory residence test" and how many 'ties' to the UK you retain (e.g. family, property). It's best to get professional advice!

There's s good explanation on the ProAct Partnership website:

https://proactpartnership.com/blog/how- … ent-status

@Gordon76

Cyprus is applying for the  Schengen area so watch this space. I do not believe that EU member states can stop EU citizens free access to EU countries. They might not grant residency but that does not matter as you can still stay and work!

Many Brits are now finding themselves having to pay increasing taxes on their savings due to UK pension payment so very close to the tax free 12,500 pounds allowance and interest rates being better after circa 6 or 7 years on next to nothing
Hence the HMRC is chasing pensioners that now get interest on their savings in UK banks above the 1,000 allowance

With inflation costs still around many UK pensioners living alone in their own house paying increased council taxes/ and increased electricity and gas bills which have rocketed over the last 2 or 3 years now face further increased water bills of around 25% this year.

So many pensioners are living in poverty in their own home and still being chase for more taxes after having winter payments taken away --- in the last year 500,000 people left the UK

Next year that number looks set to rise

Does anyone think that at some point Cyprus will end their visa programs ?

How many more people does Cyprus want before it says we are full ?

gordon - @Gordon76

The more that come the lower our tax;s will be! I think they like people with money who spend money in Cyprus. It helps the balance of payments. More houses and apartments mean more back handers :-/

@Gordon76

Hi - Probably best to discuss with Blevins Frank in Cyprus re the cumulative days situation, but I think you're assumption is correct.  From the dates you've provided, you'll still be tax resident in the UK for 25-26, so you'll have to pay tax in the UK on worldwide income for the year to 5th April 26. For 26-27, your UK tax situation will be dependent on the number of days you are allowed in the UK, based on the number of 'ties' you have - you can check on HMRC website. Note you have to inform HMRC when you leave the UK, although from what I read you can do this at the end of the tax year in question when you submit your tax return - complete form SA109 which you currently have to send by post.

Thanks to all the answers/help , very much appreciated

Ref

phildraper

@Gordon76

You need to complete a P85 on the HMRC web site when you are booked to exit the UK. This will trigger HMRC to issue a NTX tax code. Any tax previously paid in the tax year will be recalculated and if a refund is needed they will pay it back. However, it will take a long time. I have been waiting for a refund for nearly a year and apparently there is no interest paid!

Once you are a tax resident of Cyprus you can apply to any private pension you recv and have the NTX code so no UK tax at source.  If you are receiving a state pension the NTX code will automatically be applied and again no tax at source. All income must be declared in Cyprus even if the total income is below the 19k threshold.

Obviously things change all the time here so make sure you get up to date advice from a professional at the time.

Phil

Are you saying that I should fill in a P85  before I fly out in early May 2026 and before I speak to Cyprus professionals ?

rgray27  ( thanks for your info)  says

" Note you have to inform HMRC when you leave the UK, although from what I read you can do this at the end of the tax year in question when you submit your tax return - complete form SA109 which you currently have to send by post."

So does that mean I can also fill out the P85 later on line (from Cyprus) at the same time I complete the SA109 and post it ?

And at what point does my partner who will be on an MEU2 ( issued after I get the MEU1 , which I understand will be after a few days ) should she complete her P85 and her SA109 ?

Likewise the S1 forms so we get on to GESY ,   presumably this has to be done after the MEU1/MEU2 have been issued to us ?

Now we come to the UK ties --- and I can see Stormer soon imposing regulations to prevent people paying tax to the HMRC from leaving the UK if at all possible .   Soon the UK will become a wasteland due to lack of tax incomes and too much spending on migrant related issues .

Ref Ties

I currently do not own a property in the UK

I have no family living in the UK

I have no business in the UK

I do not work in the UK

I  wonder which passport I should use when visiting the UK , which I would like to do for at least 4 months to escape the hottest time of the year in Cyprus  ,  May June July and August would be my choice.

Problem here is my partner will only have here UK passport

Has any expat , now a Cyprus tax resident visited the UK for more than 90 days without any problems or had problems ?

gordon

Thanks Peter for the link

Peter Ty

@Gordon76

There is a difference between "habitual" residence (where you normally live) and tax residence, they're not necessarily the same!

While you can visit the UK for up to 90 days without becoming resident for immigration purposes, the rules around tax residency are much stricter and, especially in your first year out of the UK, you may only be allowed to visit for 16 days without risking losing non-UK-tax-resident status. It's complicated, it depends on HMRC's "statutory residence test" and how many 'ties' to the UK you retain (e.g. family, property). It's best to get professional advice!

There's s good explanation on the ProAct Partnership website:

https://proactpartnership.com/blog/how- … ent-status

It would seem that I only have 1 tie which involves spending time in the UK for the last 3 years

Hence AFTER the first tax year has been completed and I assume that is the first Cyprus tax year and not the UK tax year --- because I only have one tie I can spend up to 182 days in the UK

Not that I want that long ---- about 130 days max will be more than enough

If I were to buy a property in the UK that would be another tie ie 2 ties and that gets me 120 days which is interesting if the UK market drops considerably

cheers

gordon

@Gordon76

Its much easier to use the Quote button when replying to someone.

Above is wrong we both have 2 ties it would seem 

Am I right in thinking it is normal procedure to become a Cyprus tax resident FIRST before informing UK Banks etc of you new status and address ?

Anyone with Metro Bank ?

If so did you have to close the account ?

Do you have to provide a UK Police clearance certificate when applying for an MEU1  or MEU2 ?

AI says you do

When applying for an MEU1 (the Registration Certificate for EU Nationals, also known as the "Yellow Slip") in Cyprus, a police clearance certificate is generally required. This is a common requirement for applications related to residence permits and immigration in many countries.

Police Certificate not listed here

https://gk-lawfirm.com/practice-areas/i … in-cyprus/

or here

http://www.eures.gov.cy/mlsi/dl/eures/e … enDocument

Do you have to provide a UK Police clearance certificate when applying for an MEU1 or MEU2 ?
AI says you do

When applying for an MEU1 (the Registration Certificate for EU Nationals, also known as the "Yellow Slip") in Cyprus, a police clearance certificate is generally required. This is a common requirement for applications related to residence permits and immigration in many countries.


Police Certificate not listed here

https://gk-lawfirm.com/practice-areas/i … in-cyprus/

or here

http://www.eures.gov.cy/mlsi/dl/eures/e … enDocument - @Gordon76

@Gordon76 - you must obtain a clear ACRO certificate in the UK and this must be apostilled. Note form P85 does not need to be completed if you will be submitting a self assessment for the tax year in question.

Note re ties - you don’t have to own a property to have a tie - simply having access to one may be enough to qualify as a tie. This could even be a family or friends  spare room.

@rgray27

Thanks for your help and replies

I saw a youtube video on this yesterday ref " accommodation tie " it says you have a tie if you spend more than 16 days in the home of a close relative .

We don't , only about 5 days max in a year ,   proving that could be a problem however and presumably we could be asked to supply paperwork to beck where we had been living.

Apostllled ACRO certificates add another circa 270 pounds to the cost , do they have to be within 6 months of the date of my application ?

Another issue I saw on a video and one which some here might not know

If you return to live in the UK after moving to Cyprus within 5 years you could have to pay HMRC tax for all the time you were in Cyprus  which presumably means you would have paid tax TWICE Cyprus and then the UK as well

I checked this today and it looks legit

https://www.gov.uk/tax-return-uk

I assume that if you overstayed your tie days in the UK in any one tax year within that 5 year period then you would only have to pay UK HMRC tax for that year in question. ?

More things to ponder and sort out and again courtesy of Blevins Franks , after latest UK budget changes , see link

UK tax in 2025 and beyond, and implications for expatriates in Cyprus

1)

Assets you own in the UK remain liable to UK inheritance tax, regardless of how long you live abroad. The domicile reform won’t change this either.

Now I assume that this means any cash in UK Banks , any ISA's , or any  physical assets as well  , plus any  shares or a UK SIPP ?

Some folks may have a UK SIPP ( in drawdown or still not yet used ie to be handed on to children/spouse )

2)

But, the most significant change is that pensions will become liable for inheritance tax. With effect from 6 April 2027, any unused UK pension funds and death benefits will be included in the value of your estate for UK inheritance tax purposes.

However BF also say

Put simply, an individual will be liable for UK inheritance tax on their worldwide assets when they are classified as a long-term UK resident (living in the UK for 10 of the last 20 years). When someone leaves the UK, they remain liable to inheritance tax for up to 10 years, depending on how long they had lived there.

So the way I read this as things now stand after the UK budget  changes , you need to hang on for at least 10 years presumably after the date you became a Cyprus tax resident.  Which I now understand to be Jan 1st in the year you submitted your MEU1 or MEU2 in our cases. ?

https://www.blevinsfranks.com/uk-budget … in-cyprus/

Can anyone see changes to capital gains or dividends or interest  payments that have been made by the UK which might impact Cyprus based expats ?

I can see now why a Cyprus immigration and tax expert is needed .

@Gordon76

Hi - yes the ACRO has to be within 6 months of the residency application. The UK tax situation is horribly complicated, but yes as I read it you need to be non resident for 5 years or you could be liable to pay UK tax on e.g. pensions and dividends. The 10 year rule on inheritance tax is also a factor. Another is that the UK govt recently closed a loophole that enabled transferring a pension to a QROPS approved scheme in one country whilst living in another - so you could transfer a pension to say Gibraltar and live in Cyprus. Now you have to live in the country you transfer the pension to, or pay tax of at least 25% on the value of the fund. Cyprus does not have a QROPS scheme, so unless you’re happy to pay the tax you’re locked in to leaving your pension fund in the UK.

@Gordon76 Cyprus is applying for the Schengen area so watch this space. I do not believe that EU member states can stop EU citizens free access to EU countries. They might not grant residency but that does not matter as you can still stay and work! - @phildraper

EU citizens can be deported from another EU country if the person can't provide evidence that they have health insurance and enough money to live on, after 3 months living in the country. This isn't a set EU rule, but it is practiced in many EU countries.

@Gordon76

Hi. I’m not aware of any changes to the tax treatment re dividends, interest etc. My solution ( to be clarified) is simply to draw down large lump sums from my pensions, pay the 5% tax in Cyprus , invest it in shares, bonds etc and drawdown as required. The funds will then be effectively offshore. I’ve discussed with my financial advisor in the UK and there doesn’t seem to be any problem with this (the trustees may have some questions given the fund is meant to last for life), subject to not breaching the UK lifetime allowance.

Thanks again rgray27

There are now real concerns amongst many that a wealth tax based upon the assets a person owns is coming eg:

Wealth tax fears as Labour uses AI to value all homes

The Telegraph

https://www.telegraph.co.uk › politics › 2025/03/29

29 Mar 2025 — Fears are growing that Labour could introduce a wealth tax after it backed AI software that can value people's homes.

Obviously it won't be just property it will be EVERYTHING  and might be worded to include ALL worldwide assets

Many countries now have a wealth tax so the UK is likely next

https://www.dsburge.co.uk/tax/what-is-a-wealth-tax/

It seems that the only way to stop such a tax imposition IF as I believe it would affect non domiciles in Cyprus would be the nuclear  option to denounce UK citizenship , which currently costs 450 pounds

https://www.gov.uk/renounce-british-nationality

Has anyone done this ?

Are Cyprus Tax advisors mentioning it as an option ?

This is Ref sending the HMRC a P85

If you are doing self assessment returns ( SA )  , then doing a P85 seems NOT the way to go according to HMRC reply by HMRC admin in link below

It would seem that the HMRC say that you need to complete a SA109 form and POST it to them by October 31st in the year you leave the UK to take up residence abroad

https://community.hmrc.gov.uk/customerf … 22481a2f1a

also see

https://www.gov.uk/tax-right-retire-abroad-return-to-uk

If you do not usually complete a Self Assessment tax return

You need to fill in form P85.

Include Parts 2 and 3 of your P45 form, if you have one. Get these from your employer (or Jobcentre Plus if you’ve been claiming Jobseeker’s Allowance). If you do not have a P45 because you’re continuing working for a UK company abroad, you should still fill in form P85.

If you usually complete a Self Assessment tax return

You can tell HMRC you’re leaving through your Self Assessment tax return. Complete the ‘residence’ section (form SA109) and send it by post. You cannot use HMRC’s online services to tell them you’re leaving the UK.

So it seems that a person that has been making SA returns does not make a P85 but instead posts the HMRC a completed SA109 form

@Gordon76

Hi. I've not heard any advisor raising this as an issue. I actually doubt it will happen in the UK simply because I think it will be a big vote loser, and the current govt have enough problems to sort. Even if it did, it would start at a very high level (£10m+), so not an issue (for me anyway). I'd be more worried about the possibility of changes (i.e. limiting) to the tax free lump sum, although I think again unlikely given the adverse public reaction. If anything. I think they'll look at higher rate tax relief on pension contributions first to test the waters. That said, I'd look at taking the 25% tax free lump sum asap to remove any risk.   

Several countries are operating forms of a wealth tax

https://taxfoundation.org/data/all/eu/w … rope-2024/

In the UK case IMO Labour might find themselves soon squeezed into a cash strapped corner

Again IMO one should consider circa 500K to 750K as the level they might impose on Worldwide owned assets as they become ever more desperate to fund the 4 Million pounds a day that certain hotels and HMO's are now costing

Meanwhile the exodus of those that would likely pay a wealth tax gains pace

The number of expensive houses over 750K has been steadily increasing on Rightmove

they are not selling either

Housing supply in the UK is increasing

" Since the beginning of April, available listings on Rightmove's platform have risen to a 10-year high, it said. Rightmove has said it continues to see growth in membership numbers amid improving conditions in the UK housing market, as listings hit a 10-year high on its platform.3 days ago "

What Labour forgets is that the top 10% of income taxpayers with the largest incomes contribute over 60% of all income tax receipts

And 20% of UK taxpayers will be over 40% tax rated by 2027

IMO it looks like present labour policies have been designed to make those top 20% consider  leaving the country aka deserting the sinking ship named SS Great Britain

Last question for me and once again apologies for asking so many BUT  I have found the process has straightened out my thoughts --- I hope

Questions

1)

If one obtains non domicile status in Cyprus by way of an Irish passport ie by getting an MEU1

And they then become a Cyprus Tax Resident

Are there any benefits or downsides to renouncing their UK citizenship ?

2)

As they would hold BOTH a UK and an Irish passport )

Presumably the Irish passport could then be used on any visits to the UK afterwards for up to 90 day stays ?

3)a

Ireland and Cyprus have a dual tax treaty

Since the MEU1 would be based upon an Irish passport

Would the non domicile status gained in Cyprus by such a person be jeopardized by renouncing a UK passport ?

3)b

If the civil partner of such a person in 3)a  was a non domicile in Cyprus by way of a MEU2  (  presumably   

based upon the MEU1 )  would their non domicile status in Cyprus be affected by renouncing their UK passport ?

cheers

gordon

You are immediately deemed non domicile  once you establish tax residency irrespective of which passport residency document you hold as long as you fulfil the main conditions..

Not born in Cyprus

And have not been in Cyprus for 17 years out of the last 20 years

As far as I am aware UK still has a dual taxation treaty  too

You cannot be stateless why would you want to renounce your UK passport .what do you think you would gain by doing so or is this a,way to avoid potential increases in British taxes . Or are u considering Cyprus citizenship but then Once you have that you might be considered domiciled here... Just a thought and probably completely off the mark

What citizenship would you have if you denounced a UK citizenship ..Irish or some other

What citizenship would you have if you denounced a UK citizenship ..Irish or some other - @Toon

I would then hold an Irish passport and would not denounce my UK citizenship till I was granted one ( application now made to go on the Irish Foreign birth register )

So my thoughts are that I would not be stateless because I would be an Irish citizen

However I doubt my partner can also renounce her UK citizenship as she only has that one

My concerns are that the UK under Stormer may well impose a wealth tax either on UK owned assets or worldwide assets as the flood of UK non domiciles gathers pace , an estimated 25% to 40% now expected to be gone by end of 2026 , tax monies are dropping due to this and others exiting the UK as fast as they can offload their houses ,   so  perhaps a one off wealth tax might happen IMO even as early as 2026 .

I am now wondering which UK banks would make someone close their account if they renounced UK citizenship --- this would be a problem

You cannot be stateless why would you want to renounce your UK passport .what do you think you would gain by doing so or is this a,way to avoid potential increases in British taxes . Or are u considering Cyprus citizenship but then Once you have that you might be considered domiciled here... Just a thought and probably completely off the mark - @Toon

AI says :

AI Overview

Learn more

Stateless Person Example - What is a Stateless Person ?

Yes, a person can be stateless, meaning they are not recognized as a citizen by any country. This can happen for various reasons, including never holding a nationality, losing a nationality, or being denied citizenship despite providing evidence.

Elaboration:

No Nationality:

A stateless person is not considered a national by any state under its laws.

Reasons for Statelessness:

Never held a nationality: A person might have always been stateless.

Lost nationality: Someone might have acquired a nationality but later lost it.

Denial of nationality: They might have been denied citizenship by their former habitual residence despite evidence.

Voluntary renunciation: A person might have voluntarily given up their nationality.

Failure to register: They might have been eligible for a nationality but failed to register for it.

Unable to prove nationality: They might have been genuinely unable to provide evidence of their former nationality.

@Gordon76

Chatgpt can be wrong just like humans can...Chatgpt says that too

ChatGPT said:

Yes, you can hold both an Irish and a UK passport simultaneously. Both Ireland and the United Kingdom permit dual citizenship, allowing individuals to be citizens of both countries without renouncing either nationality .

Investopedia

Benefits of Holding Both Passports

Having dual citizenship in Ireland and the UK offers several advantages:

Freedom of Movement: Irish citizens retain the right to live, work, and travel freely within the European Union. This is particularly beneficial post-Brexit, as British citizens no longer have automatic EU rights .

Wikipedia

Access to Services: Dual citizens can access public services, education, and healthcare systems in both countries.

Wise

Employment Opportunities: You can seek employment in both the UK and EU member states without additional work permits.

Considerations

While dual citizenship offers many benefits, there are some considerations:

Taxation: Generally, you are taxed based on your country of residence. However, it's essential to understand the tax obligations in both countries to ensure compliance .

Passport Renewal: When renewing passports, ensure that personal details, such as your name, are consistent across both documents. Discrepancies can lead to complications during the renewal process .

If you're considering applying for Irish citizenship, eligibility can be based on descent, birth, or residency. For instance, individuals with an Irish-born parent or grandparent may qualify through the Foreign Births Register .

Ref previous posts regarding the need for ACRO police clearance certificates AND MEU1 and MEU2 Cyprus Immigration Application

I have contacted a Cyprus Immigration and Tax advice lawyer in Paphos

This is what they have told me -----

" As per the current regulations, Clear Criminal Records are not required for MEU1 and MEU2 permits.

The required documentation is as follows:

Passports

Proof of income (e.g., bank statements, pensions if applicable, salaries if applicable, dividends if applicable)

Apostilled marriage certificate

Health insurance (we can arrange this for you closer to your appointment date)

12-month rental agreement which must be stamped and signed by the president of the community you will be staying. "

So I assume that folks that have posted that ACRO police clearance certificates ARE needed refer to other forms of Cyprus Immigration Applications/Permits ?

@Gordon76

Likely MUKW1 And 3 HOLDERS

Not required for MEUs as Cyprus has access to EU databases, required for MWUKs as not covered by the necessary cross border access/regulations